In response to the coronavirus pandemic, Tesla began to break off contracts with contracted factories in the United States.

REUTERS / Shannon Stapleton

According to CNBC sources, an electric vehicle manufacturer is reducing the number of contract workers at both its car assembly plant in Fremont (California) and Gigafactory 1, which produces lithium-ion batteries in Reno, Nevada.

The cuts affected hundreds of workers, writes CNBC with reference to people familiar with the situation.

“To our deep regret, we must inform you that the Tesla plant shutdown was extended due to the COVID-19 pandemic, and as a result, Tesla asked to immediately terminate all contracts”, Said Balance Staffing, a human resources management company that concluded contracts with Tesla on behalf of workers. She also informed the dismissed employees that they would remain on her staff and could independently find a job in accordance with their specialty.

Balance Staffing also promised that in the future it will try to return workers to Tesla, if at all possible, and assured them that the dismissals from Tesla are not related to the quality of their work, but rather to the difficult business conditions.

According to a CNBC publication, workers who contracted with Tesla through other agencies also received similar notices on Thursday and Friday.

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